KROT11

May 17th 2011Conference Call - 1Q11 Results

Disclaimer

2

The following presentation provides general information about Kroton Educacional S.A. (“Kroton”). It consists of summary information

not intended to be complete. and should not be considered a potential investors as investment advice. This presentation is strictly

confidential and may not be published or distributed to any other party. Kroton makes no claims and provides no guarantees as to the

accurateness. relevance or scope of the information presented here. which should not be used as a basis for making investment

decisions.

This presentation contains forward-looking statements and information as defined under Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements and information are projections only. not

guarantees of future performance. We advise investors that said forward-looking statements and information are. or may in the future

be. subject to risks. uncertainty and other factors related to the operations and business environment of Kroton and its subsidiaries. and

the actual results of these companies may differ significantly from estimates of future results that are expressly stated or implied by

these forward-looking statements and information.

Although Kroton believes that the outlook and the assumptions contained in these forward-looking statements and information are

reasonable and based on data currently available to its management. Kroton cannot guarantee future results or events. Kroton

expressly exempts itself from the duty of updating any of the following forward-looking statements or information.

This presentation does not constitute an offer. invitation or solicitation of an offer to subscribe to or purchase any securities. This

presentation and its contents do not constitute the basis of any contractual agreement or legal obligation of any kind.

Initial Highlights

3

POST SECONDARY EDUCATION:

22,967 new students as of April 2011, for growth of 13.9% from 1Q10 and a record high forthe Company

13,079 FIES students as of May (16% of student base). Base of students eligible increasedfrom 61% to 77% of the student body after visits by the Ministry of Education in 1Q11

PRIMARY AND SECONDARY EDUCATION:

Number of Primary and Secondary Education students increased by 6.2% with a highrenewal rate of 93%

DISTANCE LEARNING:

New operations in the graduate distance learning segment reaches enrollment of 2,626students as of May

FINANCIAL RESULTS:

Net Revenue up 5.6% on 1Q10

EBITDA reaches R$52.1 million, for EBITDA margin of 26.7%

KROT11

Operating Results

Post Secondary Education – Growth in Student Base

Graduate Students

Post Secondary Students

5

+8%

9,114 10,945 2,868 (263) (774)

Students on 4Q10

New Students

Drop Out Graduates Students April/11

+7% +20%

76,253 81,234 20,099 (6,727) (8,391)

Students on 4Q10

New Students

Drop Out Graduates Students April/11

Undergraduate Students

85,367 76,202

69,212

92,179 22,967

(6,990) (9,165)

Students on 4Q10 Graduates Renewable Students Base

Drop Out Re-enrollments till 03/31/11

New Students Students April/11

• Growth of 8% in student base

• Record enrollment in post secondary segment:

+14% from 1Q10

Post Secondary – New Operational Map

6

Sinop (MT) 2 units

Várzea Grande (MT)

Cuiabá (MT) 3 units

Tangará da Serra(MT)

Rondonópolis (MT) 2 units

Primavera do Leste (MT)

Macapá (AP)

Lauro de Freitas (BA)Salvador (BA)

Londrina (PR)

Uberlândia (MG)

Divinópolis (MG)

Betim (MG)

Belo Horizonte(MG) 7 units

Contagem (MG)

Ipatinga MG)

Poços de Caldas (MG)

Jundiaí (SP)

Linhares (ES)Votorantim (SP)

Guarapari (ES)

Feira de Santana (BA)

São Luís (MA)

Teixeira de Freitas (BA)

Itabuna (BA)

Maceió (AL)

Governador Valadares (MG)

Sale of 1 unit in Rio de Janeiro (RJ), improving efficiency and business margins

Closing of the Belo Horizonte Unit and transfer of students to a Unit nearby, with margin gains

Installation of a start-up operation in the city of Governador Valadares (MG): 7 undergraduate programs with a totalof 700 openings each year

Implementation of a start-up operation in the city of Maceió (AL): 7 undergraduate programs with a total of 700openings each year

Main Events:

37 Units

27 Cities

9 States

7

Number of Kroton students with new FIES Eligible Student Base

+91%

506

3,973 5,329

7,008

10,174

2Q10 3Q10 4Q10 1Q11 May/11

61% 77%

Dec/2010 Apr/2011

+26%

New FIES Student Loan Program

Goal of 10,000 students in the new FIES achieved

Around 11.1% of newly enrolled students took out new FIES

loans as of May

Expansion in students eligibility, from 61% to 77% of the base,

due to the on-site evaluations conducted by the Ministry of

Education, followed by improvements in concepts

Around 1,500 students in approval process as of May 16

New FIES students: 10,174

Former FIES students: 2,905

Total FIES students: 13,079

Kroton student body: 81,234

% FIES students: 16.1%

Associated Schools

StudentsCAGR 07-11: 11.2% +17%

+9%+13%

Primary and Secondary Education – Growth of Schools and Student

8

+6%

589 602 654 720771

2007 2008 2009 2010 2011

Private Network

+2%+9%

+10%+7%

216,600 241,000 262,922

10,000

24,000 18,630

183,900 207,700

226,600 265,000

281,552

2007 2008 2009 2010 2011

Private Network Public Network - Projecta

Growth in base of Associated Schools of 7%

Growth in student base of 6%

High level of renewals of Associated Schools: 93%

Projecta still participating in final phase of the bidding

process in 2 municipalities

3

217

9

22

24

17

135

3

6

2

657

27

7

19

37

12

135

77

23

20

6

19

2

21

Associated Schools in Brazil (+ 5 in Japan e 1 in Canadá)

771

Distance Learning – Growth Accelarate

9

*There are 21 common centers between the 2 projects

Mode Methodology

Courses

implemented till

05/13/2011

Centers as of

05/13/2011

Students

enrolled as of

05/13/2011

Online100% online content. On-campus

exams 14 91 1,218

Telepresencial

Content developed through the

Network of Primary and

Secondary Education Satellites.

On-campus exams.

4 51 1,408

Total – Graduate Distance Learning 18 121* 2,626

KROT11

Financial Results

Net Revenue

11

Undergraduate Average Ticket

1Q11: R$ 553.16

149.0184.6 195.0

4Q10 1Q10 1Q11

Kroton R$ million

+6%

129.5 131.4 134.8

4Q10 1Q10 1Q11

+13%

+3%

19.653.3 60.2

4Q10 1Q10 1Q11

K-12Annual Average Ticket

2011: R$ 375,19

Post Secondary EducationR$ million

Primary and Secondary EducationR$ million

GraduateAverage Ticket

1Q11: R$ 155.21

Growth of 4.4% in the average

undergraduate ticket from 4Q10

Average graduate ticket of R$155, due to

the policy of subsidies for professors and

employees, with an upward trend

Growth of 7.3% in the average Primary and

Secondary Education ticket from 2010

Cost of Goods and Services

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CostsR$ million

Total Costs 1Q11 Breakdown

74%

14%

12% Faculty and Other Personnel

Rent

Administrative Costs

90.1 86.1 84.0

17.5 15.3 23.0

107.6 101.4 107.0

72.2%

54.9% 54.9%

4Q10 1Q10 1Q11

Post Secondary Education

Primary and Secondary Education

Total Costss / Net revenue %

Gross Income

13

Primary and SecondaryR$ million

Post SecondaryR$ million

Kroton R$ million

2.1

37.9 37.2

10.9%

71.2%

61.9%

4Q10 1Q10 1Q11% Primary and Secondary Gross Margin

41.583.2 88.0

27.8%

45.1% 45.1%

4Q10 1Q10 1Q11% Gross Margin

39.345.3 50.8

30.4%34.4% 37.7%

4Q10 1Q10 1Q11% Post Secondary Gross Margin

Operating Expenses

14

Operating ExpensesR$ million

23.5 23.3 24.0

9.8 14.1 8.8

33.3 37.4

32.8

22.3%20.3%

16.8%

4Q10 1Q10 1Q11

Personnel, General and Administrative ExpensesSales and Marketing ExpensesNet Revenue %

Personnel, General and Administrative Expenses / Net Revenue %R$ million

23.523.3

24.0

15.8%

12.6% 12.3%

4Q10 1Q10 1Q11

Selling and Marketing Expenses/ Net Revenue %R$ million

9.714.1

8.8

6.5%

7.7%

4.5%

4Q10 1Q10 1Q11

Provision for Doubtfull Account - PDA

15

5.3

9.0 7.2

3.5%4.9%

3.7%

4Q10 1Q10 1Q11

4.98.6

6.9

3.8%

6.6%

5.1%

4Q10 1Q10 1Q11

0.4 0.3 0.3

1.9%

0.6% 0.5%

4Q10 1Q10 1Q11

PDA Kroton / Net Revenue % R$ million

PDA – Post Secondary / Net Revenue %R$ million

PDA – Primary and Secondary / Net Revenue % R$ million

PDA Kroton / 2010 Net Revenue %: 4.7%

PDA Post Secondary/ 2010 Segment Net Revenue %: 4.5% PDA Post Secondary/ 2010 Segment Net Revenue %: 0.9%

Accounts Receivable

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Kroton – Post Secondary 1Q11 1Q10 Chg.% 4T10 Chg.%

Accounts Receivable 138,031 83,554 65.2% 122,021 13.1%

Direct Student´s Financial Credit 18,456 - n.a. 18,638 -1.0%

FIES 27,779 - n.a. 16,392 69.5%

Tuitions and Agreements to Receive

91,796 79,333 9.9% 86,991 5.5%

Accounts Receivable Turnover (days)

61 56 9.2% 60 1.7%

Kroton – Primary and Secondary

1Q11 1Q10 Chg.% 4Q10 Chg.%

Accounts Receivable 57,895 65,899 -12.3% 35,562 62.6%

Accounts Receivable Turnover (days)

162 212 -23.3% 106 53.7%

Values in R$ (´000)

EBITDA

17

4.1

41.4 52.1

2.7%

22.4% 26.7%

4Q10 1Q10 1Q11

EBITDA Margin

+26%

EBITDA and EBITDA MarginR$ million

R$ million 4Q10 1Q10 1Q11

Non Recurring (4,813) (4,040) (474)

Net Income

18

+25%

Net Income and Net Income MarginR$ million

(7.3)

26.2 32.7

-4.9%

14.1% 16.8%

4Q10 1Q10 1Q11

% Net Margin

Capex: 4.3% of Net Revenue on 1Q11

19

CapexR$ million

Capex 1Q11R$ million

14%

24%

40%

22%

Computer Equipment and Library

Systems Development and Software

Laboratory and Similar Equipment

Expansion of physical facilities

9.9 7.9 8.3

4Q10 1Q10 1Q11

Cash Flow

20

R$ million

Cash Position on 12/31/2010

Cash Generated from Operations excluding

non-recurring

Non Recurring Costs and Expenses

Acquisitions / Sales of Investments

CAPEX Cash Flow from Financing Activities

Cash Position on 03/31/2011

(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)(57.0)

26.2

12.1 (0.5) (0.9) (8.3)

(1.0)27.6

KROT11

Final Statements

Closing Remarks

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2011: Focus on Growth

1Margin Expansion

• Actions to expand margins by the end of 2013 have already been mapped and are being executed

2Acquisitions• Consistent pipeline

• First acquisitions planned for 2Q11

3

Organic Growth

Post Secondary Education: New start-ups andcreation of 74 new programs by 2013

Distance Learning – Graduate: Over 2,500 students after less than 4 months of operations

K-12: Maintenance of high rate of revenue growth

1Q11 Results

Operating

Post Secondary Students +8%

K-12 Students +6%

Distance Learning Students + 2,600 in 4 months

Financial

Net Revenue +6%

EBITDA R$ 52,1 mm

EBITDA Margin 26,7%

Net Income R$ 32,3 mm

Net Margin 16,8%

Investor Relationswww.kroton.com.br/ir

Carlos Lazar

carlos.lazar@kroton.com.br

+55 11 3775-2288

Phillipe Casale

phillipec@kroton.com.br

+55 11 3775-2003